Help me out
Snemalna Knjiga Opis
Karla and Steve are both small business owners. They both don’t have an important piece to keep making their goods. They come to realize that they can help each other out and benefit from it.
Snemalna Knjiga Besedilo
- Hey Karla, how's your chocolate covered strawberries business so far?
- Karla and Steve are small business owners. Steve makes flower bouquets and Karla makes chocolate covered strawberries
- Hey Steve, sadly I had to pause deliveries today because I didn't have enough strawberries
- well I think I can help you with that. As you can see I grow strawberries on my land. I have an idea, I think we can help each othr out
- Since I specialize in making strawberries and your family specializes in making wrapping paper which I don't have anymore. If we exchange goods, We can divide the labor to produce our services smoothly.
- This would also be their absolute advantage
- what's your idea?
- That sounds like a great idea. So me making wrap paper and you picking the strawberries concludes our comparative advantage which is when they can produce a good or service at a lower opportunity cost than someone else
- Exactly, lets put it on a chart. Come lets head inside
- Productivity Chart strawberry paperKarla 45/20 20/45 Steve 5/95 94/5
- Karlasteve
- Opportunity cost
- 1/2 wp. 2strawberry
- Strawberry Wrap Paper
- 10 wp. 0.1 strawberry
- Okay I understand
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